“Too late to jump on board,” says investor about bigbear.ai share

Bigbear.ai (NYSE: BBAI))) So far, the shares have increased to 93% this year and show that the strong profits can deliver AI-controlled companies in this sector with a red hot sector. And no surprise -the potential AI market rose to 1 trillion US dollar in the early 2030s, the investor’s excitement remains high.

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Bigbear.ai specializes in AI-driven decision-making solutions and has created a lucrative niche, whereby a significant part of his business comes from the US defense sector. This strong government support has recently drawn comparisons with another big AI winner recently: Palantir.

In the recognition of the obvious parallels between the two companies, investor Oliver Rodzianko believes that BBAI gives a way before the comparison is justified.

“Palantir is a competitor who dominates the market and leaves Bigbear.Ai investors with little probability of excessive growth and intangible value over time,” explains the 5-star investor. In other words, think of Nvidia against AMD.

Rodzianko adds that Palantir achieves the total turnover of 2.9 billion US dollars, which corresponds to a market share of almost 1.43%. This is significantly higher than the income of BBAI of $ 155 million, which makes up around 0.0775% of the market.

According to the investor, the relatively young age of BBAI is another weight that draws down, since it is very much on the financing and equity remuneration, which means that the dilution is in the cards.

“The biggest disadvantage for investors is probably the company’s emerging development phase,” notes Rodzianko, adding that the weighted average of almost 107 million to 210.2 million in the past three years has almost doubled.

However, there is an area in which Bigbear.ai has an advantage over Palantir: evaluation. While Palantir acts with a sky high of ~ 90X Price-to-Sales ratio, Bigbear.ai looks like a relative bargain at ~ 9x.

This is not enough for the investor to justify the purchase, especially after the recent increase in stock prices. Rodzianko expects the market saturation of new players, even if the existing managers work to consolidate their positions in this growing area.

“Bigbear.ai may be a fantastic company, but Bigbear.ai share is a bad investment at that time,” warns Rodzianko, who evaluates BBAI a hold (ie neutral). (Click here to display Rodziando’s track record.)

On the Wall Street, the stock remains relatively below the radar, with only two recently carried out analyst checks. Both rate it as a purchase and give it a moderate purchase consensus. After this year’s massive rally, analysts expect a decrease of 13%in the coming months, based on an average price target of $ 7.50. It will be interesting to see whether the analysts downgrade their ratings in the coming months or upgrade the price goals. (See BBAI share forecast)))

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Disclaimer: The opinions expressed in this article are exclusively the investor presented. The content should only be used for information purposes. It is very important to carry out your own analysis before making investments.